| FactSet Research Systems is a global financial data and analytics company. Co.'s platform delivers data, analytics, and technology that financial personnel need in their investment workflows. Several asset managers, bankers, wealth managers, asset owners, channel partners, hedge funds, corporate users, private equity and venture capital personnel, use Co.'s solutions in investment research, portfolio construction and analysis, trade execution, performance measurement, risk management, and reporting. Co. executes its strategy through its three workflow solutions: Research and Advisory; Analytics and Trading; and Content and Technology. |
When researching a stock like FactSet Research Systems, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from FDS Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for FDS stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the FDS 200 day moving average ("FDS 200 DMA"), while one of the most popular "shorter look-backs" is the FDS 50 day moving average ("FDS 50 DMA"). A chart showing both of these popular moving averages is shown on this page for FactSet Research Systems. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the FDS 200 DMA and the FDS 50 DMA, we get a moving average convergence divergence indicator ("FDS MACD"). The FDS MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart).